Start retirement savings early

While juggling the high costs of living and student debt, the average young adult may not be thinking about saving for retirement. This time of your life may be financial challenging but it is still crucial to put a savings plan into action.

Here are a few tips to help minimize financial concerns in your golden years:

Pay down debt

According to recent Bankrate survey, a lack of retirement savings is one of the most common financial regrets in U.S. adults. This is followed by not saving enough for emergency expenses and taking on too much credit card debt. To take steps toward building your retirement funds, you must first create a plan to build your emergency savings and to pay down debt. Prioritizing your finances in this manner will put you on the right track for a stress-free retirement.

Build your savings

One of the best ways to save that will supplement your income in your retirement years is with an Individual Retirement Account (IRA). These accounts offer tax breaks and compound interest which will help your earnings grow faster. See your tax advisor for details.

In addition, be sure to take advantage of any 401(k) sponsored plans offered by your employer. A good rule of thumb is to save at least five percent of your income each month. The sooner you get into the habit of putting this money aside, the faster your funds will compound and grow.

Crunch the numbers

Are you on the right track for retirement? We offer a variety of retirement savings and planning calculators that can help you determine how much you can save before you stop working. For more information on our retirement accounts, visit www.traviscu.org/ira or give us a call at (800) 877-8328.

Retirement accounts Calculators